Real Matters, identified by the ticker RLLMF, has announced a significant addition to its leadership team with the appointment of John Walsh to its Board of Directors. This change will be effective starting June 4, 2025. In his new role, Mr. Walsh will participate in the Compensation, Nomination, Governance, and Sustainability Committee. His inclusion expands the board to seven members, of which six maintain independent status.
Mr. Walsh brings valuable experience from his role as a director and former CEO at California-based company LERETA, promising to enhance governance and strategic insights at Real Matters. This appointment is part of the company's ongoing efforts to strengthen its governance framework and promote sustainable business practices.
RLLMF Key Business Developments
Release Date: April 30, 2025
- Consolidated Net Revenue: $10.1 million, down from $11.5 million in Q2 2024.
- Net Revenue Margins: Improved by 80 basis points quarter-over-quarter to 27.3%.
- US Appraisal Revenues: $26.7 million, down 18% year-over-year.
- US Appraisal Adjusted EBITDA: $2.6 million, up from $2.4 million in Q1 2025.
- US Title Revenues: $2.3 million, down from $2.5 million in Q1 2025; increased 11% year-over-year.
- US Title Net Revenue Margins: Increased to 52.1% from 44% year-over-year.
- Canada Revenues: $8.3 million, up 11% year-over-year.
- Canadian Adjusted EBITDA: $1 million, up from $900,000 in Q2 2024.
- Consolidated Adjusted EBITDA Loss: $1.9 million, compared with positive $700,000 in Q2 2024.
- Cash Position: $45.7 million, down from $49 million at December 31, 2024.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Real Matters Inc (RLLMF, Financial) achieved double-digit revenue growth in its US Title and Canada segments year-over-year.
- The company improved its net revenue margins by 80 basis points quarter-over-quarter to 27.3%, maintaining its target operating model for the tenth consecutive quarter.
- Real Matters Inc (RLLMF) launched three new clients in the second quarter, indicating successful client acquisition efforts.
- The US Title segment posted a 40% year-over-year increase in refinance origination revenues due to a growing client base and net market share gains.
- The company has a strong balance sheet with no debt and $45.7 million in cash, positioning it well to capitalize on future market improvements.
Negative Points
- Consolidated net revenue decreased to $10.1 million from $11.5 million in the second quarter of 2024, primarily due to a decline in the US purchase mortgage origination market.
- US Appraisal revenues were down 9% sequentially, reflecting challenges in the market despite outperforming estimated market volume declines.
- The company recorded a consolidated adjusted EBITDA loss of $1.9 million compared to a positive EBITDA of $700,000 in the second quarter of fiscal 2024.
- US Title segment operating expenses increased by 29% year-over-year, driven by hiring additional sales personnel and increased variable costs.
- The rising interest rate environment led to a decrease in addressable mortgage origination market volumes, impacting revenues from purchase and refinance originations.
